Just 16 houses built under multi-million pound scheme

Elevate, the company in charge of the housing market renewal scheme, has been given more than £160 million since 2004 under the Government's Pathfinder initiative, and has just asked for another £95 million for the next two years.

But it has emerged just 16 houses have been built in East Lancs with this cash - the lowest of all the eight Pathfinder schemes across the country - and 1,389 demolished.

Critics have labelled the scheme "tragic", and said homes were needlessly' flattened.

But Elevate chief executive Max Steinberg said the project was being used as a "party political football".

As well as the 16 houses paid for from Elevate funds, another 175 had been built by private developers on land acquired by the project, he said.

Where houses are demolished, tenants are offered loans of up to £30,000 to cover the cost of moving.

Mr Steinberg defended the number of homes demolished, saying there was a problem build-up of empty houses, and pointed out thousands more had been given facelifts to improve their value.

He said: "It's a false premise to say every home knocked down has to be replaced by a new one.

"There is a large surplus of empty properties in East Lancs.

"Over the next few years, several hundred homes will be built by private developers and Elevate has co-ordinated this.

"We had to create conditions for development. Elevate has improved 3,300 homes - more than three times the amount we have demolished.

"There is a lot more to do, but there are a lot of people who support the pathfinder scheme.

"It's being used as a party political football, and I am not going to get involved in that."

But Burnley vicar Philip Chew, who has appeared on TV and lobbied ministers to protest against the housing market renewal scheme, said: "Far more houses have come down than have been built.

"In my parish, Burnley Wood, it has been demolition and desolation from the outset."